Swiggy targets Rs 10,000 crore in annual adjusted Ebitda in five years

Food and grocery delivery platform Swiggy wants to generate Rs 10,000 crore in annual adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) by fiscal year 2031, according to a presentation made at the company’s capital markets day on Thursday.

Adjusted Ebitda is a measure of a company’s core operating profit excluding one-time items, non-cash expenses and certain accounting adjustments.

In fiscal year 2026, the company reported an adjusted Ebitda loss of Rs 2,483 crore, largely due to losses at its quick commerce unit, Instamart. Swiggy’s food delivery business, however, remained profitable, reporting an operating profit of Rs 1,001 crore during the year.


To achieve its FY31 adjusted Ebitda target of Rs 10,000 crore, the company expects its food delivery business to contribute Rs 5,000 crore in operating profit, while Instamart is projected to generate Rs 4,000 crore. The remaining Rs 1,000 crore is expected to come from its out-of-home consumption business, which reported an operating profit of Rs 29 crore in FY26.

“Our confidence in achieving our five-year (adjusted) Ebitda goal is rooted in the strength of our fundamentals. We have always believed that if we stay focused on solving large consumer problems and execute with discipline, the financial outcomes will follow,” Sriharsha Majety, founder and group CEO, Swiggy, said in a statement. “We are operating in three of India’s largest and fastest growing consumer opportunity spaces, food delivery, quick commerce and out of home consumption with each of these businesses having the potential to compound over the coming years”.

In May, while announcing its January-March quarter results, Swiggy said it aims to reach Rs 1 lakh crore in net order value (NOV) across its businesses over the medium term.


Focus on Instamart

In the April-June quarter, Swiggy narrowed its consolidated net loss by 34% year on year to Rs 791 crore as it stepped up efforts to make Instamart profitable. The Bengaluru-based company said its quick commerce business, which turned contribution-neutral during the quarter, is expected to break even on an adjusted Ebitda basis once it reaches 250-300 million quarterly orders, up from 114.5 million in the June quarter.

Contribution is a financial metric that measures the revenue remaining after variable costs are deducted.

For Instamart, Swiggy is also projecting Rs 1.5 lakh crore in gross order value (GOV) — or NOV plus discounts — by FY31, a 4-5 times jump from Rs 28,000 crore in FY26.

On July 28, Swiggy announced the appointment of former Myntra chief Nandita Sinha as the CEO of Instamart.

In a May interview with ET, Majety had said that the key investor concerns that Swiggy was facing were around balancing growth and profitability for Instamart.

“Our investors are satisfied with our contribution margin (CM) journey so far, and we’ve also spoken about our ambition to reach Rs 1 lakh crore in net order value. Naturally, investors will want to see a stronger conviction around that ambition. For us, the task is demonstrating a clear path to that ambition while showing that contribution margins remain strong and growth continues to come through. That’s when you can build a much stronger bridge towards that goal,” he had said.

Swiggy raised Rs 10,000 crore via a qualified institutional placement last December, and as of June 30, it had Rs 14,367 crore in cash on its books.


Inventory model shift

The company is also looking to transition into the inventory model, and will seek shareholder approval to convert into an Indian owned and controlled company at its annual general meeting on August 18. This will be its second attempt at doing so after stakeholders rejected a previous proposal in May. The company has already crossed 50% in domestic ownership.

Swiggy said on Thursday that once it has the necessary approvals, it estimates a two-to-four quarter timeline for transitioning to the inventory model.